exclude these types of endeavors Many of us already know that our insurance needs change as our living situations change. This can be changing from a tenant policy to a homeowner policy when you buy your first home, or increasing the amount of coverage as you add onto or renovate your home, or even writing a new policy when you move into a nicer home. What most people do not know is how much renting your property to others can change your insurance needs.

First things first, we need to understand what renting property means in terms of insurance. Renting out your home or property is considered a business pursuit. Homeowner or tenant policies are intended for owner/renter occupied dwellings, and frequently exclude these types of endeavors – even if it’s only done on a short-term basis like AirBNB. Many people do not know this when they begin to rent out their homes. This means that unless a property owner does their research, they are likely to have a gap in their insurance coverage when they rent out their property.

Don’t worry; there are options to fix this gap. This solution is typically as simple as getting a Landlord Policy for longer term rental situations. When renting your home on a shorter term basis like AirBNB or HomeAway, however, the solution is not as simple.

Many insurance companies are not yet willing to provide coverage for these types of situations, taking a conservative approach in order to see how the various potential legal pitfalls will play out. A few insurance companies, such as Erie Insurance, have taken a more proactive approach by offering this coverage to their clients.

Ultimately, your best option is to contact your agent (or us!) to find out if your particular life-changes require any sort of additions or alterations to your insurance coverages. And don’t forget to ask about Life Insurance!